Bitcoin sought a rebound into the July 5 Wall Street open as the market digested the start of Mt. Gox reimbursements.
Bitcoin bull market: “Rocky road ahead”
Data from Cointelegraph Markets Pro and TradingView tracked a 3.8% Bitcoin (BTC) price rebound from lows of $55,550 on Bitstamp.
This represented the lowest levels for BTC/USD since late February, as liquidations mounted and sentiment fell close to “extreme fear.”
Market observers, while surprised at the extent of the latest downside, pinned blame on the start of transfers from wallets affiliated with the Mt. Gox rehabilitation proceedings.
“The first transfers have begun. Market sold off again following these transfers. Now comes the time where we’ll figure out how much is getting sold and how the market absorbs it,” popular trader Daan Crypto Trades wrote on X.
“Rocky road ahead but after this massive supply overhang is cleared that’s great for the space in the long run.”
As Cointelegraph reported, the total funds involved in the distribution to Mt. Gox creditors totaled more than $8 billion in Bitcoin and Bitcoin Cash (BCH).
Daan Crypto Trades noted that BTC/USDT continued to respect a broad downward trending channel — something which even infamously cautious trader Il Capo of Crypto considered an encouraging sign.
“Interaction with channels usually means corrective pattern (consolidation before continuation),” he responded.
Meanwhile, even the more bullish voices within the trading community conceded challenging times for hodlers.
“Bitcoin’s higher timeframe market structure is being put to the test,” popular trader Jelle acknowledged while analyzing the three-day chart.
“As it stands, we’re looking at a lower low -- but it all depends on the candle close - which coincides with the weekly candle close. Close above $57k and structure remains bullish.”
Ichimoku looks to BTC price monthly close
The latest weekly candle further pressured the bull market from the perspective of the Ichimoku Cloud indicator.
Related: Watch these Bitcoin price levels next as $52K supertrend risks failure
At $56,150, the price fell below the Kijun Sen trendline on weekly timeframes, with the weekly candle sandwiched between it and the upper trendline, Tenkan Sen.
Commenting on the setup, popular trader Titan of Crypto suggested that a close below Kijun Sen on monthly timeframes would require a rethink of overall bullish market structure.
“From Ichimoku perspective, unless a monthly candle closes below Kijun and confirms with the following monthly candle, Bitcoin remains bullish,” part of a recent X post read.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.